Quote:
Originally Posted by Badhobz
so the video says that if you work it out, at 1.9 mil for the land, and development costs, it'll roughly equal 1 million dollars for a ~500 sqft 1/4 piece of these multiplexes.
who in their right minds would pay 1 mil for 500ish sqft when apartments are on a downward trend? You can easily buy a 2 bedroom 800ish sqft apartment for 800k almost anywhere in the city right now.
and WTF with the parking requirements? makes total sense to me that they need to supply parking as otherwise you'll have a constant street battle for parking, but holy shit can you imagine digging up a 4000sqft lot to put in underground parking?!?!?! WTF
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Well, he does conflate a few different zoning rules together to make that example so it's not entirely accurate - the parking requirement is Coquitlam's, the density requirement is California's and the land cost and development fees are Vancouver's so the example is the worst case scenario.
The reality isn't that far though and the worst part right now are the development fees. The fees eat up 10-20% of the total cost of development which is a killer for making a project profitable. The parking regs are less restrictive in places like Vancouver or Burnaby - usually .5-1.0 spots per unit.
It's still really shitty though - from what I can tell most multiplex projects in Burnaby do not pencil out as profitable right now, same with low rises b/c of the development fees so even though Burnaby has relatively permissive zoning rules no one is building anything.